Canadian fashion brand Aritzia grows ecommerce revenue by over 50% in Q4

The Canadian retailer attributed the growth to an improved online experience for customers and significant growth in the U.S. market. Aritzia Inc. reported ecommerce earnings increased more than 50% for the quarter ended Feb. 26, 2023. The Canadian retailer reported net revenue grew 47%, and it reached $2 billion in sales for the first time in 2023. Aritzia ranks No. 211 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

Ecommerce boomed
Ecommerce sales were up 51% year over year for the fourth quarter, Aritzia said. Online sales accounted for about 43% of revenue in the quarter.

Traffic growth in both the U.S. and Canada fueled the sales record. Conversion also grew due to improvements in Aritzia’s website experience and search functionality, CEO Jennifer Wong said.

The clothing retailer is already gearing up for further online growth. Wong says Aritzia is now working toward better functionality to bring consumers “a captivating personalized experience.” Those improvements will allow Aritzia.com to make intelligent recommendations to shoppers based on style and preferences. Wong said Aritzia expects this plan to more than double ecommerce revenue by 2027. Tests of these tools show higher conversion rates and revenue per session, she said, without providing exact details.

Influencers and celebrities drive sales
Outlets including Bloomberg and Business of Fashion have praised Aritzia for winning over Gen Z consumers in a difficult retail environment. Much of that success is due to successful partnerships with celebrities and influencers on social media. Wong noted relationships with Martha Stewart, Lupita Nyong’o, and Tracey Ellis Ross as names strengthening the brand in the last quarter. Influencer Emma Chamberlain’s role as the face of the retailer’s spring campaign also had “strong” results, she said without revealing more.

US growth
Aritzia is based in Canada, but in 2023, the U.S. became the retailer’s largest market, generating more than half of total revenue. U.S. sales grew 56% year over year, compared with 32% growth in Canada. Aritzia still has a “long runway of growth” in the U.S., Wong told investors. Aritzia opened seven new stores in the U.S. in its fiscal 2023. Physical stores remain the retailer’s top tool for acquiring new customers, who then go on to shop online.